Opinion
Should LGAs Be Scrapped?
The Committee on Political Restructuring in the
ongoing National Conference, recently recommended the scrapping of the third tier of government.
Expectedly, mixed reactions have trailed the advice. Some Port Harcourt residents spoke with our Chief Correspondent, Calista Ezeaku on the controversial issue. Our photographer, Ibioye Diama captured their images.
Mr Ariobiobara Bestman – Estate Surveyor/ASSBIFI Unit President
Local government is very important because it is the third tier of government, the grassroot government. So I think the idea of scrapping local governments is not a welcome development. If local governments are scrapped, it is going to bring deficiency to grassroot development because local government staff are people within the local government who ordinarily wouldn’t have gotten to the state level employment competitive setting. Local government has helped in reducing rural/urban drift. In the past, a lot of people go to the urban centres for white collar jobs but local governments have made themselves very fundamental in the way and manner that they have brought a reduction in such drift.
Agreed, most of the local government chairmen share their monthly allocations. We have so many local governments that are deficient in development, the pace of development is very slow.
However, scrapping local governments wouldn’t be the solution. When you have a defective setting, scrapping is not a solution. Rearrangement of the administrative pattern is the best solution. When you scrap, you have not really solved the problem. You will have a lot of problems to contend with – employment problems, rural development problems.
So, I’m of the opinion that we should not scrap the local governments, rather there should be checks and balances in the administration of the local governments. For instance, let certain percentage of local government funds be used by the chairmen in setting up rural industries. That will create more employment and boost the local government setting.
If local governments are scrapped, we will miss a lot – the hustling and bustling of local government administration, those that inhabit in the local government areas will desert the local governments and life in the local governments will be worst than what it is today.
Comrade Ibali Ferdinand – NULGE chairman, Ahoada East LGA.
What those people who are agitating for the scrapping of local government failed to understand is that we have three tiers of government in Nigeria, viz; federal, state and local governments. And the local government is the grassroot government. If you have any problem in the community, it is the local government that wades into that matter to settle it. If there is crisis in the community, the state government will find it difficult to come and settle that matter.It is the local government that does that most of the time.
So the agitation for the scrapping of local governments or putting them under the state government is uncalled for. And what will happen to the workers of the local government areas if scrapped? Most of the people in the communities are feeding from these people. For instance, the councillors give helping hand to these people. You cannot even see the state assembly men in the communities. It is the local government chairmen that know the problems of the people in the rural areas. There is an adage that when you see a tree from a distance you will not know that tree, but when you go nearer, you can tell what type of tree it is.
That is exactly what is happening in local governments. And you don’t expect the local government chairmen to be in the offices, every time. And I think it is a bad insinuation that local governments are where monies are shared.
It is not a true fact. When money from the federal comes, they sit in F and GPC, where distribution is made. Salaries, contracts and other allowances, are paid. The chairman does not even have the right to stay in his office and determine the distribution of funds of the local government.
As I earlier said, LGAs are set up to bring about development in the local areas, some LGAs that have money are carrying out some projects like roads, mono pumps, bore-holes and others. Now if you go ahead and scrap LGAs, these things will be stopped, the workers of the LGAs will lose their jobs, their dependants will suffer. Unemployment is a major problem in Nigeria, and the people that have jobs you want to lay them off, what do you think will happen in the country? Scrapping of local governments will even bring more problems to Nigeria. It will not help the country.
Instead of putting the local government under the state government or scrapping it, they should give LGAs autonomy and set up an institution that should monitor them.
Kubi Enyie _ Public Servant.
It will not be in the best interest of the country to scrap the local government. It might lead to increase in crime rate and youth restiveness. You know many youth are close to the local government. Most of them benefit from the local government, from the chairmen, the councillors and the people that work there.
If you scrap LGAs, you will be depriving these people a source of income. So it is not possible.
It is not fair to scrap LGAs. Whoever came up with the idea of scrapping local governments must have an evil mind. There is no local government in the state that does not have ongoing development projects.
The chairmen of all the 23 local government areas in Rivers State are performing very well. If you move round you can see ongoing projects. The local government should be made autonomous.
It shouldn’t be attached to the state government. If it is federal government that is funding the LGAs, then, the federal government should have a body that will regulate the local government activities, not the state. For instance, if I’m the one paying you, and someone else is supervising you, it is not a good understanding. I know how much I gave to you and I’m supposed to be the one to supervise you to know what and what you used the money for.
So what I am saying is that the local government should remain.They should not scrap local government. And the federal government that finances the local government should set up a regulating body to monitor the activities of the LGAs not the state and they should scrap the joint account arrangement. There are some local government areas in this country that only pay workers salary, they don’t even know how much they receive from the federal government in a particular month. The state government only gives them salaries for the workers and other activities in the council alone. There cannot be development of the LGAs under such arrangement. But here in Rivers State, the state government is doing what it is supposed to do. It does not tamper with local government funds.
Egondu Nwoko – Civil Servant.
Local governments cannot be scrapped now. What will happen to the staff of the councils of the local governments if scrapped? Where will they work? Local governments should remain a distinct body as it is now. It should not be merged with the state, put under the control of the state or whatever. It is as important as any other tier of government.
Kingsley Micheal – Student
I don’t really know much about local government system in Nigeria. All I know is that it is the third tier of the government and it caters for grassroot development. But I don’t think they’ve been doing that. I have not seen any road or any tangible project said to be carried out in my own local government area and others.
The workers and even the Chairman hardly go to work. Many of them do not even reside in the local government. As far as I am concerned, the political system we have in Nigeria whereby political godfathers install local government chairmen and expect them to share the monthly allocation with them, makes the local governments irrelevant because after sharing the money, there is nothing left for the development of the area. Putting the local government under the state government will actually reduce cost of governance. But you see, there is corruption everywhere in Nigeria so the alleged corrupt practices, lack of commitment in the local government might not change much under the control of the state government. What we need is a total overhauling of the entire system.
From all indications, Nigeria possesses enough human and material resources to become a true economic powerhouse in Africa. According to the National Population Commission (NPC, 2023), the country’s population has grown steadily within the last decade, presently standing at about 220 million people—mostly young, vibrant, and innovative. Nigeria also remains the sixth-largest oil producer in the world, with enormous reserves of gas, fertile agricultural land, and human capital.
Yet, despite this enormous potential, the country continues to grapple with underdevelopment, poverty, unemployment, and insecurity. Recent data from the National Bureau of Statistics (NBS, 2023) show that about 129 million Nigerians currently live below the poverty line. Most families can no longer afford basic necessities, even as the government continues to project a rosy economic picture.
The Subsidy Question
The removal of fuel subsidy in 2023 by President Bola Ahmed Tinubu has been one of the most controversial policy decisions in Nigeria’s recent history. According to the president, subsidy removal was designed to reduce fiscal burden, unify the foreign exchange rate, attract investment, curb inflation, and discourage excessive government borrowing.
While these objectives are theoretically sound, the reality for ordinary Nigerians has been severe hardship. Fuel prices more than tripled, transportation costs surged, and food inflation—already high—rose above 30% (NBS, 2023). The World Bank (2023) estimates that an additional 7.1 million Nigerians were pushed into poverty after subsidy removal.
A Critical Economic View
As an economist, I argue that the problem was not subsidy removal itself—which was inevitable—but the timing, sequencing, and structural gaps in Nigeria’s implementation.
- Structural Miscalculation
Nigeria’s four state-owned refineries remain nonfunctional. By removing subsidies without local refining capacity, the government exposed the economy to import-price pass-through effects—where global oil price shocks translate directly into domestic inflation. This was not just a timing issue but a fundamental policy miscalculation.
- Neglect of Social Safety Nets
Countries like Indonesia (2005) and Ghana (2005) removed subsidies successfully only after introducing cash transfers, transport vouchers, and food subsidies for the poor (World Bank, 2005). Nigeria, however, implemented removal abruptly, shifting the fiscal burden directly onto households without protection.
- Failure to Secure Food and Energy Alternatives
Fuel subsidy removal amplified existing weaknesses in agriculture and energy. Instead of sequencing reforms, government left Nigerians without refinery capacity, renewable energy alternatives, or mechanized agricultural productivity—all of which could have cushioned the shock.
Political and Public Concerns
Prominent leaders have echoed these concerns. Mr. Peter Obi, the Labour Party’s 2023 presidential candidate, described the subsidy removal as “good but wrongly timed.” Atiku Abubakar of the People’s Democratic Party also faulted the government’s hasty approach. Human rights activists like Obodoekwe Stive stressed that refineries should have been made functional first, to reduce the suffering of citizens.
This is not just political rhetoric—it reflects a widespread economic reality. When inflation climbs above 30%, when purchasing power collapses, and when households cannot meet basic needs, the promise of reform becomes overshadowed by social pain.
Broader Implications
The consequences of this policy are multidimensional:
- Inflationary Pressures – Food inflation above 30% has made nutrition unaffordable for many households.
- Rising Poverty – 7.1 million Nigerians have been newly pushed into poverty (World Bank, 2023).
- Middle-Class Erosion – Rising transport, rent, and healthcare costs are squeezing household incomes.
- Debt Concerns – Despite promises, government borrowing has continued, raising sustainability questions.
- Public Distrust – When government promises savings but citizens feel only pain, trust in leadership erodes.
In effect, subsidy removal without structural readiness has widened inequality and eroded social stability.
Missed Opportunities
Nigeria’s leaders had the chance to approach subsidy removal differently:
- Refinery Rehabilitation – Ensuring local refining to reduce exposure to global oil price shocks.
- Renewable Energy Investment – Diversifying energy through solar, hydro, and wind to reduce reliance on imported petroleum.
- Agricultural Productivity – Mechanization, irrigation, and smallholder financing could have boosted food supply and stabilized prices.
- Social Safety Nets – Conditional cash transfers, food vouchers, and transport subsidies could have protected the most vulnerable.
Instead, reform came abruptly, leaving citizens to absorb all the pain while waiting for theoretical long-term benefits.
Conclusion: Reform With a Human Face
Fuel subsidy removal was inevitable, but Nigeria’s approach has worsened hardship for millions. True reform must go beyond fiscal savings to protect citizens.
Economic policy is not judged only by its efficiency but by its humanity. A well-sequenced reform could have balanced fiscal responsibility with equity, ensuring that ordinary Nigerians were not crushed under the weight of sudden change.
Nigeria has the resources, population, and resilience to lead Africa’s economy. But leadership requires foresight. It requires policies that are inclusive, humane, and strategically sequenced.
Reform without equity is displacement of poverty, not development. If Nigeria truly seeks progress, its policies must wear a human face.
References
- National Bureau of Statistics (NBS). (2023). Poverty and Inequality Report. Abuja.
- National Population Commission (NPC). (2023). Population Estimates. Abuja.
- World Bank. (2023). Nigeria Development Update. Washington, DC.
- World Bank. (2005). Fuel Subsidy Reforms: Lessons from Indonesia and Ghana. Washington, DC.
- OPEC. (2023). Annual Statistical Bulletin. Vienna.
By: Amarachi Amaugo